MMICC 2010 - MCG

Marta JablonaskaMarta JablonaskaLani AdeoyeLani AdeoyeMarie-Pierre HerveMarie-Pierre HerveNadia SayedNadia Sayed

AGENDA

•Current Situation

•Executive Summary

•Guiding Principles

•Recommendation

•Implementation

•Wrap-up


• Worldwide

12 RESIDENT

(7) (2)

Macao Orlando, Tokyo

8 TOURING


Current Successes


3 Pillars of Sustainability

*IMPLICATION: overly dependent on relationship with MGM Mirage in a saturated market


REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD

VEGAS


By increasing the number of resident shows outside of Las Vegas, continuing to launch new touring shows and diversifying through a product extension, you will be able to reduce your dependency on Las Vegas, increasing revenues in Resident Market between 12.2 and 24.5 million dollars.

This will ensure the sustainability of Cirque du Soleil.

Revenue Growth

Las Vegas and the economic recession

Las Vegas Strip

Revenue Decline

2008* 11%

2009** 9.4%

Sources: *http://www.nytimes.com/2010/02/12/business/12casino.html** http://www.bloomberg.com/apps/news?pid=20601103&sid=axSujAzgiBJg

Result: Decline in Cirque’s Vegas revenues 7% last year

Innovation-> financial results

Production costs

Years in operation

Per year CumulativeRevenue net of production costs

“O”92 9 0.8 864

Mystere35 14 0.66 736

OperationsResident Travelling

Break Even 65% 60%

Occupancy 90-95% 80%

Costs 30 Mil 37-50 Mil

Capacity 50-60 artistsadditional support staff

50-60 artists

Source: world tourism industry http://www.unwto.org/facts/menu.html

Revenue Streams

Assumed Occupancy rates90-95% for Vegas and Orlando70% for Macau *82% for New York *90% for Tokyo


Recommendation - Resident Shows

PARIS, SYDNEY, LONDON, NEW YORK, HONG KONG, SHANGHAI

No PresencePARIS, SYDNEY, HONG KONG, SHANGHAI

Million Sydney Shanghai Hong Kong

Paris

Traffic Level

2.7 6.66 7.94 15.6

Tourist Spending

$ 24.7 $ 40.8 $ 40.8 $ 55.6

Strategic Location

REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD


Recommendation

PARIS, HONG KONG, SHANGHAIPARIS, HONG KONG, SHANGHAI

SELECT A PARTNERSELECT A PARTNER

REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD

Decision Criteria for Partner Selection-Creative Challenge

-Partnership Sustainable-Return on Investment-Social Responsibility




Partnership with Disney

Brand Value

Artistic Performance

Fictional Characters

Experience

Invoke ImaginationProvoke SensesEvoke Emotion


Partnership with Disney Resort


Recommendation

• Continue with approx. 1 new tour per year

• Stick with both Arena and Big Top– Prioritize firstly on Big Top• Historic Roots, Tent (symbolic)

REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD


Recommendation

REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD

BRANDEXTENSION


Recommendation

REVENUE STREAM

SHOWS

BRAND EXTENSIONS

RESIDENT

TOURING

REST OF WORLD

Wii Fit Benefits• Broad Demographic

• Interactive • Experience






Recommendation``Wii Are Cirque`` ``Wii Are Cirque`` - - ApplicationApplication

Mystere “O” Ka Nouba


Timeline 2010 2012 2014 2016

Current Portfolio

Wii Game

Tour Shows

Disney Resident Shows

Expansion of HQ


Wii Game

Nintendo Partnership


Disney Residency Shows– Large Scale Productions R&D

1. Paris2. Shanghai

– Capacity Requirements:– 50-60 artists– 100 HQ employees– 150 Support Staff

Process

Creation

Artistic Products

Production

Logistics


Financial Sustainability

Financial Sustainability

Wrap - Up

costs millionsbuilding 2

production costs 60

staff costs artists 2,750,000

Visitors Revenues5% 10% 5% 10%

new stores projected revenue

Shanghai 9 0.45 0.9 4.05 8.1Paris 12.8 0.6 1.3 8.2 16.4

12.2 24.5

MMICC 2010 - MCG

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